Features
The following are the features of Retail Trade are as follows :
The following are the features of Retail Trade are as follows :
1) Trading in small Quantity :-
1) Trading in small Quantity :-
The retailer normally buys in somewhat large quantities from the wholesalers and sometimes even from the manufacturers. He then divides the bulk into small quantities or units and sells it to final consumers as per their needs.
The retailer normally buys in somewhat large quantities from the wholesalers and sometimes even from the manufacturers. He then divides the bulk into small quantities or units and sells it to final consumers as per their needs.
2) Trade Restricted to Local Areas :-
2) Trade Restricted to Local Areas :-
The retailers normally sells in a particular local area. This is because most retailers own only one store in a particular locally. His trading activities are confined to that particular local area.
The retailers normally sells in a particular local area. This is because most retailers own only one store in a particular locally. His trading activities are confined to that particular local area.
3) Wide Variety of Goods :-
3) Wide Variety of Goods :-
The retailers may deal in a wide variety of goods. For instance, a shopkeeper may stock cosmetic, stationery, dry fruits, toiletries, tea, biscuits, etc. However , there are retailers who deal in only one line of goods. For instance a cloth retailers may deal only in cloth.
The retailers may deal in a wide variety of goods. For instance, a shopkeeper may stock cosmetic, stationery, dry fruits, toiletries, tea, biscuits, etc. However , there are retailers who deal in only one line of goods. For instance a cloth retailers may deal only in cloth.
4) Convenience to customers :-
4) Convenience to customers :-
The retailer offer lot of convenience to the consumers. He provides variety of goods under one roof. secondly, he sells in any quantity which consumer demands and thirdly the retail stores are within easy reach of consumers, i.e. many a times, within the vicinity of their residence.
The retailer offer lot of convenience to the consumers. He provides variety of goods under one roof. secondly, he sells in any quantity which consumer demands and thirdly the retail stores are within easy reach of consumers, i.e. many a times, within the vicinity of their residence.
5) Limited Capital :-
5) Limited Capital :-
The retailer can start and run his business with a limited capital. It depends upon the type of retailer. For instance, a small retailer can start business at his own residence and with a capital of say Rs. 1000/- or even less. However, a departmental store may require lakhs of rupees to start a business of retailing.
The retailer can start and run his business with a limited capital. It depends upon the type of retailer. For instance, a small retailer can start business at his own residence and with a capital of say Rs. 1000/- or even less. However, a departmental store may require lakhs of rupees to start a business of retailing.
6) Limited Risk :-
6) Limited Risk :-
Since the retailer deals in fast moving items or daily required items, the risk involved is less. Again, he trades in small quantities. He need not stock large stock of goods, and as such any risk of loss due to changes in demand, fall in price, etc., is minimum.
Since the retailer deals in fast moving items or daily required items, the risk involved is less. Again, he trades in small quantities. He need not stock large stock of goods, and as such any risk of loss due to changes in demand, fall in price, etc., is minimum.
7) Limited Staff :-
7) Limited Staff :-
The retailer may or may not require any staff. Small retailers manage everything by themselves. However, in large retail organisations, there is a requirement of sales and other staff. The number of such staff is quite less as compared to manufacturing organisations.
The retailer may or may not require any staff. Small retailers manage everything by themselves. However, in large retail organisations, there is a requirement of sales and other staff. The number of such staff is quite less as compared to manufacturing organisations.
8) Personal Attention to consumers :-
8) Personal Attention to consumers :-
The retailers are in constant touch with their regular customers. They can advise their customers in respect of new arrivals, latest designs, etc. Any personal assistance such as home delivery, after-sales-service is also undertaken by certain retailers.
The retailers are in constant touch with their regular customers. They can advise their customers in respect of new arrivals, latest designs, etc. Any personal assistance such as home delivery, after-sales-service is also undertaken by certain retailers.
9) Last Link :-
9) Last Link :-
The retailer is often the last link in the chain of distribution. This is because, neither the manufacturer nor the wholesalers, has the time or resources to deal directly with the final consumers.
The retailer is often the last link in the chain of distribution. This is because, neither the manufacturer nor the wholesalers, has the time or resources to deal directly with the final consumers.
10) Convenience in setting up a Business :-
10) Convenience in setting up a Business :-
It is very easy to start a retail business. It is not necessary to have heavy infrastructure and huge capital. There are no government formalities to start a retail business. Anyone even with limited capital can start retailing business.
It is very easy to start a retail business. It is not necessary to have heavy infrastructure and huge capital. There are no government formalities to start a retail business. Anyone even with limited capital can start retailing business.